Sunday, November 2, 2014

Uber

Uber is called a ride-sharing app, but it naturally involves a lot more than that. A consumer goes to the app and requests a ride from their location to a different location. The request goes to the company’s systems and is passed out to local drivers that are willing to complete the request - pick up the consumer, drop them off, collect payment. For a given fare, there would hopefully be a number in the area, and the closest one would be able to complete the trip in the shortest time, which is good for the consumer (fast response, they get where they’re going) and the driver (shorter trips means more more time spent driving.)

Practically, well, there are some issues. In order to be competitive with existing providers - that is, taxicabs - prices offered have been cut back. By some accounts, this has cut the effective wage of drivers to perhaps $12/hour - above minimum, but not by a lot. In response, drivers have tried protesting at Uber’s offices, attempting to negotiate with Uber as a group, and even refusing fares. Or to put it in labor terms, they’ve attempted collective bargaining and strikes.  The Teamsters are getting involved, helping pass Uber drivers’ demands on to Uber. (Although they can’t officially represent them as a union since Uber drivers are independent contractors, not employees.)


During the 1920s, labor in the United States had difficulties. When the Great Depression hit, those difficulties became worse as existing union members were unable to pay dues. Then FDR was elected, changes to labor law were implemented that made unions more viable, and union membership increased through the end of World War II. It’s not clear whether this was a side effect of the Crisis, or coincidental. The interest of these Uber drivers in activities directly from the unionized labor playbook suggests that something similar is happening. Perhaps a Hero generation entering the workforce supports unity of effort; perhaps the recognition of a Crisis period makes people more willing to stand together.  Better evidence of a connection would be if more labor successes happen over the next few years.

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